CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
Kaveri Insurance Ltd. must file regulatory returns with IRDAI. The Company Secretary is asked to set up a system for this. Which approach best fits the compliance management role of the Company Secretary?
The best approach is a compliance calendar listing due dates, with department owners assigned and status reported regularly to the board or audit committee. Reactive filing or delegating to agents risks default, and the statutory auditor must stay independent of management compliance functions.
- APrepare a compliance calendar of due dates, assign owners in each department, and track and report status to the board or audit committeeCorrect
- BFile returns only when IRDAI sends a reminder
- CDelegate all filings to the sales agents
- DHave the statutory auditor prepare and sign all returns as the insurer's compliance officer
Explanation
A compliance calendar with defined owners and periodic reporting is the standard compliance management tool. Waiting for reminders or delegating filings to agents defeats timely compliance, and the auditor is independent and cannot act as the insurer's compliance officer.
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